Business Reporter
THE Mutapa Investment Fund is poised to acquire local healthcare and drug manufacturing company,CAPS Holdings.
The state run daily paper said the move comes despite a Supreme Court ruling in February this year that overturned a High Court order granting ownership to the State including the authority to appoint directors to the firm’s board.
Despite the court ruling,the Government views CAPS s a strategic entity and part of its assets , according to Government officials.
The officials said terms of the acquisition will need to e negotiated with CAPS beneficial owner Mr Fred Mutanda , who holds a controlling 88% stake in the company.
Some of the entities under CAPS Holdings include St Anne’s Hospital,CAPS Manufacturing and QV Pharmacies.
The ownership of CAPS has bee mired in controversy since 2015 when the government entered into a share purchase agreement with Mr Mutanda.
However, Mr Mutanda alleges that the government later pulled out of the deal , rendering subsequent actions null and void.In a letter to Mr Mutanda about two weeks ago,Industry and Commerce Secretary Dr Utete Wushe said the government would now need to address the issue through Mutapa.
“Reference is made to your letter dated September 20 2024 regarding the acquisition of your shares in CAPS Health Care and Manufacturing by the Government of Zimbabwe,”the letter says in part.
“We have carefully considered your request and have consulted with our principals .After a thorough review , we have been informed that your matter will be handled by the Mutapa Fund.The Mutapa Fund is a reputable financial institution with a proven track record in managing complex transactions.
“They are well equipped to address the specific nuances of your situation and will provide you with necessary guidance and support.We believe that engaging with the Mutapa Fund will ensure a fair and efficient resolution to your matter.”
Mr Mutanda says he now awaits engagements with the Mutapa Fund for a way forward
